FX.co ★ Palm Oil Stabilizes After Seven-Session Decline

Malaysian palm oil futures remained largely unchanged, hovering around MYR 3,730 per tonne following a seven-session decline that led prices to nearly hit an eight-month low. Traders were evaluating reports suggesting that U.S. President Trump might soon unveil a significant trade agreement, potentially with the U.K., which could alleviate global trade tensions. Simultaneously, market participants were awaiting crucial data from China, including trade statistics as well as consumer and producer price indices. Additionally, a monthly report from the Malaysian Palm Oil Council (MPOC) is anticipated next week. According to projections by Reuters, April inventories are expected to have increased for the second consecutive month, with production likely surging by 16.9%, the highest since November. This week, the futures have declined by nearly 4%, marking a second consecutive weekly drop as expectations of a production rebound have sparked concerns about a potential stockpile build-up. Supporting this perspective, a palm oil millers' association reported a 60% increase in output from May 1 to May 5 compared to the previous month.